Microsoft and UNDO are extending their years-long cooperation with a new carbon dioxide removal (CDR) agreement, supported by novel financing from Canadian climate fund Inlandsis.
Under the newly announced agreement, UNDO is expected to deliver 28,900 tonnes of permanent carbon removal by 2036 through its enhanced rock weathering (ERW) operations.
As part of this collaboration, Inlandsis, a fund managed by Fondaction Asset Management, has created a debt financing structure that will provide the capital needed to fully deliver on this CDR purchase, with the potential to scale further high-integrity global ERW projects.
This deal brings the total CDR contracted between Microsoft and UNDO to 49,000 tonnes, confirming the tech titan’s confidence in enhanced rock weathering as a CO2 removal pathway.
The two companies first partnered up back in 2023, when Microsoft embarked on its first-ever ERW deal, purchasing 5,000 tonnes of CDR from UNDO.
A year later, in 2024, the two partners fortified the collaboration with a second CDR agreement totalling 15,000 tonnes. This purchase also fueled scientific work that centered around vital research for the ERW field.
Microsoft’s Carbon Removal Portfolio Director Phillip Goodman believes enhanced rock weathering is a promising pathway to gigatonne-scale carbon removal.
Commenting on the new deal, he stated, “UNDO’s commitment to scientific rigor gives us confidence in both the durability of these credits and their role in helping Microsoft achieve its goal of being carbon negative by 2030.”
Relevant: Microsoft Makes First Enhanced Weathering CO2 Removal Purchase From UNDO
UNDO’s ERW approach of tackling atmospheric CO2 by spreading mineral-rich silicate rocks on land surfaces has already received support from a number of leading brands such as British Airways, Barclays, and McLaren.
According to UNDO Founder and CEO Jim Mann, innovative financing is the catalyst that can unlock gigatonne-scale carbon removal. In a statement, he shared, “The support of Inlandsis shows how financial backers can help transform carbon removal into a genuine asset class—one that is scalable, tradable, and investable.”
On behalf of Inlandsis, Managing Director David Moffat said, “This collaboration marks several milestones for us—our first investment in an ERW project and the first Canadian investment for our second fund—and highlights our commitment to advancing carbon finance across Canada and beyond.”
Read more: Microsoft Inks New, Follow-on Carbon Removal Deal With UNDO
